The soy complex experienced a down day. The weakest leg was the meal. The oil share gas gained to approx. 34% at present. The ride has been a bit bumpy but none the less the fundamentals appear to be intact. To be considered here is the weather going forward domestically. Which looks serviceable to planting. In addition the Brazilian crop by most estimates continues to look bigger and bigger, perhaps 112-114 mmt. The export lineup will be massive going forward. This will continue to offer competition to the US. The Argentinian crop is struggling a bit. However the smaller producing countries have shown production growth. The main point. There is no shortage of bean availability globally. This fact will become more evident as we wind down US planting. The demand scenario for meal remains lackluster for various reasons. While oil has become somewhat robust. The current global production issues with EU rapeseed will contribute to a friendly environment. The management of the crush going forward will effect both the spreads and flat price. The funds are long,but correct at present. Will they be forced out due to weather ? Perhaps all that can change this BEAR.
Exercise caution
Be Well